CFX Pops on China-Fueled Optimism, While Analysts Warn of Fragile Fundamentals

Conflux’s CFX Jumps on China Buzz, But On-Chain Data Tells a Different Story

Conflux’s CFX token rallied nearly 14% over the weekend, outpacing the broader crypto market’s gains amid growing speculation that China could be easing its stance on some digital assets. This optimism has helped fuel a surge in CFX’s price, which has climbed over 190% in the past month.

Positioning itself as “China’s Ethereum,” Conflux aims to operate a regulatory-compliant blockchain inside mainland China while maintaining its token and global presence abroad. Analysts describe this approach as a “one country, two systems” model, enabling the project to straddle both Chinese regulations and international crypto markets. The platform has also partnered with major Chinese social media companies, building local support.

Investor excitement is further stoked by Conflux’s plans to issue an offshore yuan stablecoin, aligning with reports that Beijing may favor stablecoins as a tool to reduce reliance on the U.S. dollar.

Despite the bullish narrative, the network’s on-chain metrics show limited growth. Transaction volumes have been flat over the past year and remain below 2022 averages. Worryingly, around 80% of the gas fees on the network come from just three addresses — a sign of heavy centralization. In contrast, Ethereum’s top spender accounts for less than 10% of gas usage.

While crypto is not banned outright in mainland China, and regions like Hong Kong continue to support digital assets, it’s unclear if Conflux truly captures the evolving China crypto story. The disconnect between CFX’s price rally and its underlying on-chain activity suggests fundamentals have yet to catch up with the hype.